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Researching and setting your selling price

Three ways to determine your selling price are by Getting appraisals from agents, Doing your own market research , Or Getting a professional valuation. We don’t recommend agent appraisals for a few reasons. Firstly, it’s not really fair to the agents if you have no intention of using them to sell. Having said that, agents often play the game with sellers so we don’t blame you if you play the game as well.

Secondly, the agent wants to secure your business at all costs. They always assume you will be getting 3 appraisals and they know that human nature dictates that sellers will go with the highest appraisal, meaning some might tell you your house is worth more than it really is. We recently had a client who got 4 agent appraisals and they varied by an astonishing $200,000 and that was on a property worth below $800,000

Fortunately it’s quite easy for you to do your own market research, to determine an appropriate selling price. Start by looking at similar properties, both current and sold, on realestate.com.au. Next trawl the web for some market information using websites like Onthehouse.com.au, which may already have an estimate for your property. Finally, consider purchasing a detailed property report which contains things like comparable sales data, market statistics, and an estimate of your homes current value. If you are interested, you can get reports like this from PropertyNow.

Your third option is a professional valuation. A registered Valuer can provide an independent estimate of your property’s value after a physical inspection, local market review, and comparison of similar properties which have sold. This can set you back a few hundred dollars but can be well worth it if you’re not confident in determining the selling price yourself. A professional Valuer will also provide you with a report that you can show to buyers which can really help during negotiations. A Valuer will give you a realistic price and you can ask him off the record for his thoughts on the highest possible price should you find what is known as a heart buyer. A heart buyer is someone who just loves your property and has to have it and will pay more than the general market. Valuers don’t really factor those kind of buyers in so just ask for that opinion when you receive the report.

Oh and by the way, don’t think that you must use the Valuation as your asking price. You can set your asking price at what you want regardless of the Valuation and nor do you have to show anyone including a buyer. Of course you always have that option should you wish to. Mainly though just view a Valuation as a guideline so that you don’t set your price too high or too low..
Whichever way you choose, don’t stress, you can always revise your price if you need to. If there’s still something you don’t understand, let us know in the comments below, otherwise, hit us with a like if you found this video helpful. As always, visit PropertyNow.com.au for more detailed and up to date information.